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Kai Inc. has a $700,000 investment opportunity that would involve sales of $1,050,000, a contribution margin ratio of 40% of sales, and fixed costs of

Kai Inc. has a $700,000 investment opportunity that would involve sales of $1,050,000, a contribution margin ratio of 40% of sales, and fixed costs of $325,000. The company's minimum required rate of return is 12%. The residual income for this year's investment opportunity is $_____________

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